Ameriprise Earnings Fall Amid Volatile Equity Markets
October 21 2015 - 8:02PM
Dow Jones News
By Josh Beckerman
Ameriprise Financial Inc. said its third-quarter earnings fell
5.5% as equity-market volatility hurt results.
The financial-services company said it had "a solid third
quarter given the backdrop of declining and volatile equity
markets, unfavorable foreign exchange and persistently low interest
rates."
Operating revenue fell 1%.
Ameriprise reported a profit of $397 million, or $2.17 a share,
compared with $420 million, or $2.17 a share, a year earlier.
Per-share operating earnings, which exclude realized gains and
losses, market effects on variable annuity benefits and other
items, rose to $2.35 from $2.10.
Total revenue fell 7% to $2.89 billion.
Analysts polled by Thomson Reuters expected per-share operating
profit of $2.33 and revenue of $3.06 billion.
The company said advice-and-wealth-management client assets
edged down to $433 billion from $434 billion, as lower equity
markets were partly offset by strength in fee-based investment
advisory net inflows. Total assets under management and
administration were $766 billion.
Ameriprise said total advisers increased to 9,814, reflecting
strong retention and ongoing recruiting. The purchase of the retail
assets of JHS Capital Advisors, announced in April, added 53
advisers and $1 billion of client assets.
In after-hours trading, Ameriprise shares were down 1% at
$110.50.
Ameriprise was spun off from American Express Co. in 2005.
On Oct. 1, rating firm A.M. Best noted that factors like low
interest rates could cause earnings volatility at Ameriprise, but
said the company had a strong market position and high retention
rates for experienced advisers.
Write to Josh Beckerman at josh.beckerman@wsj.com
Subscribe to WSJ: http://online.wsj.com?mod=djnwires
(END) Dow Jones Newswires
October 21, 2015 19:47 ET (23:47 GMT)
Copyright (c) 2015 Dow Jones & Company, Inc.
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